McKinney City Council Passes Budget with Lower Tax Rate

McKINNEY (Sept. 18, 2014) — During the regular meeting Tuesday, the McKinney City Council approved the Fiscal Year 2014-15 budget of $367.5 million. The City Council also adopted a reduced property tax rate of 0.5830 per $100 of valuation, down from a rate of 0.5855 that has been in place since 2008.

“City Council is pleased to reduce the property tax this year, and we have a plan in place to continue to lower it over the coming years,” said Mayor Brian Loughmiller. “We have a fiscally prudent budget plan moving forward. The city’s financial policy places a priority on strong reserves, a healthy fund balance, and maintaining a balanced budget. While a quarter-cent reduction may appear small to the individual homeowner, it represents a reduction in over $350,000 in revenue and expenditure to the city as we continue to seek efficiencies in the operation of local government."

The general fund revenues and expenditures are proposed at $108,226,822 for the fiscal year, which runs from Oct. 1, 2014 through Sept. 30, 2015. The fund balance remains strong, with a projected $39,412,403 FY 2015 ending balance, or 36 percent, which exceeds the 25-percent requirement.

The number of McKinney staff members per capita is much lower than comparably sized cities in the area. The budget addresses customer service needs with additional staffing.

To right-size the staff that serves a steadily growing population, the general fund includes an additional 24.5 positions across 14 city departments. The budget also features a new fully funded equipment replacement fund.

“Adding positions will help the city align service levels on programs and address customer service needs so we can continue to meet the goals and objectives set by City Council. The equipment and facilities replacement fund will lessen our reliance on issuing debt,” said Chief Financial Officer Rodney Rhoades.

About McKinney

McKinney, Texas, is unique by nature. As one of the fastest-growing cities in the United States, McKinney has a current population exceeding 149,000. Established in 1848, the city is located 30 miles north of Dallas and is the county seat of Collin County. McKinney offers rolling hills, lush trees, a historic downtown square and unique neighborhoods and developments. The city ranks No. 2 on the Money Magazine Best Places to Live list for 2012. Visit the city’s website at mckinneytexas.org.